How to lower the cost of your cable bill in minutes

When someone purchases a car or a house, the buyer and seller expect to negotiate on the price a little bit. But what most people don't know is the price of your cable bill is the same. It's negotiable.

That's what Laura and Brad Hammes found out. Just 17 months ago when their son Logan was born, their daily costs grew along with their family.

"Diapers are expensive. Everything's expensive when it comes to a child," says Laura.

After analyzing their budget month after month, the family is ready to cut costs and save. The first thing on the chopping block: the cable bill.

Budgeting expert Brian Delaney, of Consumer Credit Nationwide, says it is a good place to start.

"It's not like groceries. That's a need, not a want, depending on if you're buying steak or macaroni. But the cable bill is certainly more of a want than a need. So that's one we can frequently suggest," says Delaney.

After getting some tips from the cost-cutting king himself, Laura sat down to give it all a try.

15 things you can stop wasting your money on:

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15 things you can stop wasting your money on

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How to lower the cost of your cable bill in minutes

1. Cable TV

With the advent of Hulu, Netflix, Amazon Instant Video, and Apple TV, there's hardly a reason to splurge on a fancy DVR system or even basic cable — so long as you're willing to be patient.

Most shows are added at least 24-hours after airing and some networks won't give them up until eight days.

"If you travel abroad often, make sure you use credit cards without foreign transaction fees, otherwise you'll be paying an extra 3% to 5% on all your purchases."

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3. Extended warranties

Retailers push hard to sell you extended warranties — and conveniently pump up their sales figures at the same time.

Don't do it, Schrage warns.

"The only instance I'd recommend a warranty is in the case of a laptop. Otherwise, the warranties themselves can often cost as much as simply buying a used or new replacement for your item, or repairing it," he adds.

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4. The roof over your head

If you're blowing most of your income on a loft in Midtown, you're making a big mistake, says Jeremy Gregg, executive director of the PLAN Fund.

When buying a new cell phone, Sethi likes to pay a little bit more upfront by choosing the unlimited data and text messaging plan. He then sets a three-month check-in on his calendar, and analyzes his spending patterns after a few months to see where he can cut back.

You can use this method for any usage-based services, he says.

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6. Online shipping

Nearly all retailers offer some sort of option that gets your purchases to your doorstep without additional fees.

Zappos and L.L. Bean are among the rarest breed of businesses offering free shipping on every single purchase, but most companies will demand a minimum purchase.

To help track down deals on shipping, use Freeshipping.org. The site stores information on expiration dates, tells you much to spend to qualify, and lets you search by store name or product.

Personal finance expert Dani Johnson suggests you think twice before rushing out to buy Dad another tie this Christmas.

"You should make a pact with your friends and family to give back instead," Johnson says. "Pool a percentage of money you were going to spend on gifts and give a secret blessing to somebody who is truly in need."

Weight loss pills and supplements marketed as miracles for overweight couch potatoes are most likely traps.

"Not only are there enough pills and potions that you could start a new one each week, but the negative effects on your health outweighs the money you will waste," says nutritionist Rania Batayneh.

"This is a billion dollar industry and the truth is that a lean body does not come in a pill," Batayneh says.

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12. Lottery tickets

"Sure, you can (buy a lottery ticket) every once in a while just for fun, but never make a lottery purchase with any real expectation of winning," Schrage warns.

"The odds are significantly stacked against you, and why waste your hard-earned money on lottery tickets when you could be saving for retirement or treating yourself to a nice meal?"

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13. Brand new cars

"People get bored with cars quickly. They always want a new car and so they're always dealing with a car payment," says certified financial planner Michael Egan. "But it's a hugely depreciating asset. You don't want to be putting a lot of money into something that's going to be worth nothing after a certain number of years."

Look for used car options, which could save you a substantial amount of money. Check out Kelley Blue Book to get an idea of how much you should pay for a used car.

Another option is leasing a car. You can determine whether or not this is a good option for you by following this flow chart.

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14. Subscriptions

Subscriptions — to magazines, newspapers, and the gym — can add up, and oftentimes, we don't use them as much as we had originally planned.

Sethi recommends implementing what he calls the 'à la carte' method, which takes advantage of psychology to cut our costs.

"Cancel all the discretionary subscriptions you can: your magazines, TiVo, cable — even your gym," Sethi explains in "I Will Teach You To Be Rich." "Then, buy what you need à la carte. Instead of paying for a ton of channels you never watch on cable, buy only the episodes you watch for $1.99 each off iTunes. Buy a day pass for the gym each time you go."

It works for three reasons, Sethi writes: You're likely overpaying already, you're forced to be conscious about your spending, and you value what you pay for.

Tip number one: Know your motive before getting on the phone, and stick to it.

A cable company's first step will likely be to get you to pay more, by trying to up-sell you into buying even more features than you already have. In Laura's case, that's exactly what they tried to do.

Remember your goal, and be insistent.

The next step: Talk to the right person.

"The first person will try to persuade you. But if they can't, they'll transfer you to a retention department. Those people are trained, and they have the flexibility and authorization, to offer you sweeteners to get you to stay," advises Delaney.

About five minutes into her call, Laura was transferred to what her cable company calls their "loyalty department."

Companies know keeping you as a customer is easier, and more cost effective, than finding a new one.

Third: Do your homework.

Once you're talking to the right person, step three comes into play. Do your homework before hand, and have competing offers available, and use them as ammo.

"When you're armed with information like that, you're more likely to have them respond directly to a deal versus you saying hey, I want my bill lowered," says Delaney.

And after just 20 minutes on the phone, Laura was able to cut costs without changing anything in her current cable bundle. She saved roughly $30 a month. That's $360 a year.

This whole process didn't take difficult deal making. It didn't take much away from family time either. All it took was some persistence.

And while there's no guarantee you'll save, it's worth a try if you're looking for a new way to cut back.

"Call and question things. You don't have to accept what your bill is every month, especially when it's going up and up and up. You might as well call and at least try to get a better deal," says Laura.

Another thing to remember: Be persistent.

Make it a habit to call your cable company every six months or when you see those costs creeping up. There's likely a deal to be made to keep saving money.